TAX FILE

The IRS has issued its annual update of per diem rates (Revenue Procedure 2001-47). For most trucking companies, there is no change: Employees and self-employed individuals in the transportation industry who are away from home can generally claim $38 per day in the “lower 48” states and $42 per day elsewhere for meals without specific documentation of each expenditure. However, companies that pay for lodging, meals and incidental expenses should check the revised list of “high-cost localities” in the update. The revisions are retroactive to October 1, but taxpayers may choose to use the former rates through December 31.